By Alan Hatfield
On Holding AG (NYSE: ONON) today updated its full-year guidance after beating expectations for the first quarter on robust revenue growth across direct-to-consumer and wholesale channels while achieving profitability.
Net sales increased by 67.9% over the prior year period to CHF 235.7 million, a quarterly record for the company, with annual net sales increases of 68% and 67.8% in direct-to-consumer and wholesale channels, respectively. The company has raised full-year revenue guidance and expects net sales of at least CHF 1.04 billion in 2022.
Continued supply chain and transitory headwinds saw higher airfreight prices push gross profit margin down to 51.8% from 57.6% in the prior year period, although overall gross profit climbed 51% on the year to CHF 122.1 million. Resulting net income reversed last year’s losses, climbing from CHF -10.5 million in the first quarter of 2021 to CHF 14.3 million in the first quarter.
In a comment, Co-CEO and CFO Martin Hoffmann said, “We are extremely proud and grateful to report that we continue to see strong demand for the On brand globally and we had an outstanding start to 2022. Our team has once again done phenomenal work to navigate through an uncertain supply chain environment and to mitigate the impacts from last year’s factory closures. While the transitory supply shortage had still limited our ability to fulfil all of the demand, we were able to ship more products to our customers than expected while also maintaining profitability. In March, for the first time in our history, we were able to ship more than 1 million pairs of shoes in a single month.”